DUBAI:OPEC agreed to stick to its oil output targets at a meeting on Sunday December 4 as oil markets struggle to assess the impact of a slowing Chinese economy on demand and a G 7 price cap on Russian oil on supply, according to OPEC sources.
The decision came two days after the Group of Seven G 7 nations agreed a price cap on Russian oil.
The Organization of the Petroleum Exporting Countries OPEC and its allies, including Russia, angered the United States and other Western nations in October when it agreed to cut output by 2 million barrels per day, about 2 per cent of world demand, from November to the end of 2023.
Washington accused the group and one of its leaders, Saudi Arabia, of siding with Russia despite Moscow's war in Ukraine.
OPEC claimed that it had cut output because of a weaker outlook. Oil prices have declined since October due to slower Chinese and global growth and higher interest rates, prompting market speculation that the group could cut output again.
An OPEC source said the group's key ministers have reached a decision and that it's a rollover until the end of 2023. The OPEC full ministerial meeting is still going on at 1210 GMT 8.10 pm, Singapore time On Friday, G 7 nations and Australia agreed a $60 per barrel price cap on Russian crude oil in a move to deprive President Vladimir Putin of revenue while keeping Russian oil flowing to global markets.
Moscow was analysing how to respond, and Moscow said it would not sell its oil under the cap.
Many analysts and OPEC ministers have said the price cap is confusing and probably inefficient, as Moscow has been selling most of its oil to countries like China and India, which have refused to condemn the war in Ukraine.
Sources said that OPEC met virtually on Saturday without Russia and allies and did not discuss the Russian price cap.